J.Jill, Inc. (NYSE:JILL) today announced financial results for
the third quarter ended October 31, 2020.
James S. Scully, Interim Chief Executive Officer of J.Jill, Inc.
stated, “Our third quarter results represent sequential topline
improvement as the majority of our stores were reopened for the
entire period. Direct sales were up 4% for the quarter and
penetration remained healthy at over 60% of total sales. We have
continued to be disciplined with regards to cost and inventory
management, and we took aggressive actions to effectively clear
units during the quarter to better align our inventory position
with current demand. These actions, along with our improved
financial flexibility through our recent agreement with our
lenders, better position J.Jill as we continue to focus on driving
profitable growth. As we embark on our next chapter, we are pleased
to welcome our permanent CEO, Claire Spofford, who will join us
early next year, and brings deep knowledge of J.Jill’s loyal
customer base as well as a track record of evolving brands into
profitable, digitally-driven omnichannel businesses.”
For the third quarter ended October 31, 2020:
- The Company ended the third quarter of fiscal 2020 with $9.2
million in cash and $37.3 million of total availability under its
revolving credit agreement.
- Inventory at the end of the third quarter of fiscal 2020
decreased 17.0% to $67.6 million compared to $81.4 million at the
end of the third quarter of fiscal 2019.
- Total net sales for the thirteen weeks ended October 31, 2020
were $117.2 million compared to $166.1 million for the thirteen
weeks ended November 2, 2019.
- Direct to consumer net sales represented 63.3% of total net
sales, compared to 43.0% in the third quarter of fiscal 2019.
- Gross profit was $69.0 million compared to $106.9 million in
the third quarter of fiscal 2019. Gross margin was 58.9% compared
to 64.4% in the third quarter of fiscal 2019. The year over year
gross margin decline was primarily driven by actions taken in the
quarter to clear excess inventory.
- SG&A was $92.2 million compared to $98.0 million in the
third quarter of fiscal 2019. In the third quarter of fiscal 2020,
SG&A included $13.3 million of expense primarily the result of
legal and advisory costs related to the debt restructuring
agreements with lenders and costs directly incurred in response to
the COVID-19 pandemic offset by a benefit of $0.6 million related
to an adjustment to the estimated costs of permanently closing
certain retail locations. Excluding these items, SG&A as a
percentage of total net sales was 67.7% compared to 59.0% in the
third quarter of fiscal 2019.
- During the third quarter of fiscal 2020, the Company recognized
impairment charges of $0.9 million related to long-lived assets
associated with retail stores.
- Loss from operations was $24.1 million compared to income of
$9.0 million in the third quarter of fiscal 2019.
- Adjusted (Loss) Income from Operations*, excluding the
non-recurring items and impairment charges incurred in the third
quarter of fiscal 2020, was a loss of $10.4 million compared to
income of $9.0 million in the third quarter of fiscal 2019.
- Interest expense was $4.8 million compared to $4.8 million in
the third quarter of fiscal 2019.
- Income tax benefit was $7.3 million compared to expense of $1.8
million in the third quarter of fiscal 2019, and the effective tax
rate was 24.0% compared to 42.5% in the third quarter of 2019.
- Net loss was $23.2 million compared to income of $2.4 million
in the third quarter of fiscal 2019.
- Net loss per share was $2.52 compared to income of $0.27 in the
third quarter of fiscal 2019, including the impact of non-recurring
items and adjusted for the 5-for-1 reverse stock split that was
effective November 9, 2020. Excluding the impact of non-recurring
items Adjusted Loss per Share* in the third quarter of fiscal 2020
was $1.30 compared to Adjusted Income per Diluted Share of $0.34 in
the third quarter of fiscal 2019.
- Adjusted EBITDA* for the third quarter of fiscal 2020 was a
loss of $1.6 million, compared to income of $19.6 million in the
third quarter of fiscal 2019.
- The Company closed 5 stores in the third quarter of fiscal 2020
and ended the quarter with 276 stores.
For the thirty-nine weeks ended October 31, 2020:
- Total net sales for the thirty-nine weeks ended October 31,
2020 were $300.8 million compared to $523.3 million for the
thirty-nine weeks ended November 2, 2019.
- Direct to consumer net sales represented 65.3% of total net
sales compared to 42.5% in the thirty-nine weeks ended November 2,
2019.
- Gross profit was $174.2 million compared to $328.5 million in
the thirty-nine weeks ended November 2, 2019. Gross margin was
57.9% compared to 62.8% in the thirty-nine weeks ended November 2,
2019.
- SG&A was $257.8 million compared to $306.1 million in the
thirty-nine weeks ended November 2, 2019. In the thirty-nine weeks
ended October 31, 2020, SG&A included $23.0 million of expense
primarily the result of legal and advisory costs related to the
debt restructuring agreements with lenders and costs directly
incurred in response to the COVID-19 pandemic offset by a benefit
of $1.0 million related to adjustments to the estimated costs of
permanently closing certain retail locations. Excluding these
items, SG&A as a percentage of total net sales was 78.4%
compared to 58.6% in the thirty-nine weeks ended November 2,
2019.
- During the thirty-nine weeks ended October 31, 2020, the
company recognized impairment charges of $52.0 million associated
with goodwill, other intangible assets and other long-lived assets
compared to $97.5 million in the thirty-nine weeks ended November
2, 2019.
- Loss from operations was $135.7 million compared to a loss of
$75.0 million in the thirty-nine weeks ended November 2, 2019.
- Adjusted (Loss) Income from Operations*, excluding the
non-recurring items and impairment charges incurred year-to-date in
fiscal 2020 and fiscal 2019, was a loss of $61.6 million compared
to income of $21.8 million, respectively.
- Interest expense was $13.6 million compared to $14.9 million in
the thirty-nine weeks ended November 2, 2019.
- Income tax benefit was $38.5 million compared to expense of
$0.1 million in the thirty-nine weeks ended November 2, 2019, and
the effective tax rate was 25.5% compared to -0.1% in the
thirty-nine weeks ended November 2, 2019.
- Net loss was $112.5 million compared to a loss of $90.0 million
in the thirty-nine weeks ended November 2, 2019
- Net loss per share was $12.49 compared to a net loss of $10.31
in the thirty-nine weeks ended November 2, 2019, including the
impact of one-time items. Excluding the impacts of nonrecurring
items, Adjusted (Loss) Income per Share* for the thirty-nine weeks
ended October 31, 2020 was a loss of $6.10 compared to income of
$0.58 for the thirty-nine weeks ended November 2, 2019.
- Adjusted EBITDA* in the thirty-nine weeks ended October 31,
2020 was a loss of $33.9 million compared to income of $53.7
million in the thirty-nine weeks ended November 2, 2019.
* Non-GAAP financial measures. Please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP Net Income to Adjusted
EBITDA, Adjusted Income from Operations and Adjusted Net Income”
for more information.
Outlook
The impact of the COVID-19 pandemic and the pace at which there
are new developments, locally and globally, has created a great
deal of uncertainty. Consequently, the Company is not providing
financial guidance at this time but expects to end the year with
approximately 270 stores. The Company continues to expect total
capital spend in fiscal 2020 to be approximately $5.0 million.
Recent Developments
On September 30, 2020, in accordance with the Transaction
Services Agreement (“TSA”), The Company entered into agreements
with its lenders creating an amended Term Loan, new Priming Loan
and a subordinated facility. The agreements include the issuance of
Penny Warrants. The details of these agreements can be referenced
in our Form 10-Q filed today, December 10, 2020.
Separately, on October 7, 2020, the Company announced the
appointment of Claire Spofford as Chief Executive Officer,
effective no later than February 15. She will also become a member
of the Board of Directors. Jim Scully will remain Interim CEO to
ensure a smooth transition of the role. Spofford a veteran retail
executive with more than 20 years of experience, most recently
served as President of Cornerstone Brands.
Additionally, on November 4, 2020, the Company announced a
1-for-5 reverse stock split effective November 9, 2020. The
Company’s shareholders received one share for every five shares
held prior to the effective date.
Please refer to http://investors.jjill.com for these prior
announcements as well as relevant filings.
Conference Call Information
A conference call to discuss third quarter 2020 results is
scheduled for today, December 10, 2020, at 8:00 a.m. Eastern Time.
Those interested in listening in the call are invited to dial (866)
393-4306 or (734) 385-2616 if calling internationally. Please dial
in approximately 10 minutes prior to the start of the call and
reference Conference ID 8692056 when prompted. A live audio webcast
of the conference call will be available online at
http://investors.jjill.com/Investors-Relations/News-Events/events.
A taped replay of the conference call will be available
approximately two hours following the live call and can be accessed
both online and by dialing (855) 859-2056 or (404) 537-3406. The
pin number to access the telephone replay is 8692056. The telephone
replay will be available until Thursday, December 17, 2020.
About J.Jill, Inc.
J.Jill is a premier omnichannel retailer and nationally
recognized women’s apparel brand committed to delighting customers
with great wear-now product. The brand represents an easy,
thoughtful and inspired style that reflects the confidence of
remarkable women who live life with joy, passion and purpose.
J.Jill offers a guiding customer experience through about 275
stores nationwide and a robust e-commerce platform. J.Jill is
headquartered outside Boston. For more information, please visit
www.jjill.com or http://investors.jjill.com. The information
included on our websites is not incorporated by reference.
Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented in accordance with generally accepted accounting
principles (“GAAP”), we use the following non-GAAP measures of
financial performance:
- Adjusted EBITDA, which represents net income (loss) plus
interest expense, provision (benefit) for income taxes,
depreciation and amortization, equity-based compensation expense,
write-off of property and equipment, and other non-recurring
expenses and one-time items. We present Adjusted EBITDA on a
consolidated basis because management uses it as a supplemental
measure in assessing our operating performance, and we believe that
it is helpful to investors, securities analysts and other
interested parties as a measure of our comparative operating
performance from period to period. We also use Adjusted EBITDA as
one of the primary methods for planning and forecasting overall
expected performance of our business and for evaluating on a
quarterly and annual basis actual results against such
expectations. Further, we recognize Adjusted EBITDA as a commonly
used measure in determining business value and as such, use it
internally to report results.
- Adjusted Income (Loss) from Operations, which represents
operating income (loss) plus other non-recurring expense and
one-time items. We present Adjusted Income (Loss) from Operations
because management uses it as a supplemental measure in assessing
our operating performance, and we believe that it is helpful to
investors, securities analysts, and other interested parties as a
measure of our comparative operating performance from period to
period.
- Adjusted Net Income (Loss), which represents net income (loss)
plus other non-recurring expenses and one-time items. We present
Adjusted Net Income (Loss) because management uses it as a
supplemental measure in assessing our operating performance, and we
believe that it is helpful to investors, securities analysts and
other interested parties as a measure of our comparative operating
performance from period to period.
- Adjusted Diluted Earnings (Loss) per Share (“Adjusted Diluted
EPS”) represents Adjusted Net Income (Loss) divided by the number
of fully diluted shares outstanding. Adjusted Diluted EPS is
presented as a supplemental measure in assessing our operating
performance, and we believe that it is helpful to investors,
securities analysts and other interested parties as a measure of
our comparative operating performance from period to period.
While we believe that Adjusted EBITDA, Adjusted Income (Loss)
from Operations, Adjusted Net Income (Loss) and Adjusted Diluted
EPS are useful in evaluating our business, they are non-GAAP
financial measures that have limitations as analytical tools.
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss) and Adjusted Diluted EPS should not be considered
alternatives to, or substitutes for, net income (loss) or EPS,
which are calculated in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss) and Adjusted Diluted EPS differently or not at
all, which reduces the usefulness of such non-GAAP financial
measures as tools for comparison. We recommend that you review the
reconciliation and calculation of Adjusted EBITDA, Adjusted Income
(Loss) from Operations, Adjusted Net Income (Loss) and Adjusted
Diluted EPS to net income (loss) and EPS, the most directly
comparable GAAP financial measures, under “Reconciliation of GAAP
Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income (Loss)
as well as Reconciliation of GAAP Operating Income (Loss) to
Adjusted Income (Loss) from Operations” and not rely solely on
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss), Adjusted Diluted EPS or any single financial
measure to evaluate our business.
Forward-Looking Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, “forward-looking
statements.” Forward-looking statements include statements under
“Outlook” and other statements identified by words such as “could,”
“may,” “might,” “will,” “likely,” “anticipates,” “intends,”
“plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,”
“projects” and similar references to future periods, or by the
inclusion of forecasts or projections. Forward-looking statements
are based on our current expectations and assumptions regarding
capital market conditions, our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements, but are not limited to, the Company’s ability to
consummate the Transaction, on the terms proposed or at all,
including the Company’s ability to obtain requisite support of the
Transaction from various stakeholders and to finalize the terms and
documentation relating to the Transaction; the Company’s ability to
comply with the terms of the TSA, including completing various
stages of the restructuring within the dates specified therein; the
effects of disruption from the proposed financial restructuring
making it more difficult to maintain business, financing and
operational relationships; the Company’s ability to achieve the
potential benefits of the proposed financial restructuring; the
impact of the COVID-19 epidemic and political unrest on the Company
and the economy as a whole; the Company’s ability to adequately and
effectively negotiate a long-term solution under its outstanding
debt instruments; risks related to the Forbearance Agreements,
including the duration of such agreements and the Company’s ability
to meet its ongoing obligations under such agreements; the
Company’s ability to take actions that are sufficient to eliminate
the substantial doubt about its ability to continue as a going
concern; the Company’s ability to develop a plan to regain
compliance with the continued listing criteria of the NYSE; the
NYSE’s acceptance of such plan; the Company’s ability to execute
such plan and to continue to comply with applicable listing
standards within the available cure period; risks arising from the
potential suspension of trading of the Company’s common stock on
the NYSE; Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions, including risks
regarding our ability to manage inventory or anticipate consumer
demand; changes in consumer confidence and spending; our
competitive environment; our failure to open new profitable stores
or successfully enter new markets and other factors set forth under
“Risk Factors” in our Annual Report on Form 10-K for the fiscal
year ended February 1, 2020. Any forward-looking statement made in
this press release speaks only as of the date on which it is made.
J.Jill undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
(Tables Follow)
J.Jill, Inc. Consolidated
Statements of Operations and Comprehensive Income (Unaudited)
(Amounts in thousands, except share and per share data)
For the Thirteen Weeks
Ended
October 31, 2020
November 2, 2019
Net sales
$
117,224
$
166,085
Cost of goods sold
48,225
59,137
Gross profit
68,999
106,948
Selling, general and administrative
expenses
92,184
97,972
Impairment of long-lived assets
906
-
Operating (loss) income
(24,091
)
8,976
Other expense (a)
1,628
-
Interest expense
4,753
4,826
(Loss) income before provision for income
taxes
(30,472
)
4,150
Income tax (benefit) provision
(7,313
)
1,763
Net (loss) income and total comprehensive
(loss) income
$
(23,159
)
$
2,387
Net (loss) income per common share
attributable to common shareholders:
Basic
$
(2.52
)
$
0.27
Diluted
$
(2.52
)
$
0.27
Weighted average number of common shares
outstanding:
Basic
9,177,350
8,767,733
Diluted
9,177,350
8,790,140
For the Thirty-Nine Weeks
Ended
October 31, 2020
November 2, 2019
Net sales
$
300,829
$
523,281
Cost of goods sold
126,645
194,736
Gross profit
174,184
328,545
Selling, general and administrative
expenses
257,829
306,051
Impairment of long-lived assets
27,493
2,064
Impairment of goodwill
17,900
88,428
Impairment of intangible assets
6,620
7,000
Operating loss
(135,658
)
(74,998
)
Other expense (a)
1,628
-
Interest expense
13,640
14,852
Loss before provision for income taxes
(150,926
)
(89,850
)
Income tax (benefit) provision
(38,464
)
132
Net loss and total comprehensive loss
$
(112,462
)
$
(89,982
)
Net loss per common share attributable to
common shareholders:
Basic
$
(12.49
)
$
(10.31
)
Diluted
$
(12.49
)
$
(10.31
)
Weighted average number of common shares
outstanding:
Basic
9,004,321
8,730,636
Diluted
9,004,321
8,730,636
(a)
Other expense consists of the
mark-to-market adjustment on warrants and derivative liabilities
related to the debt restructuring consummated on September 30,
2020.
J.Jill, Inc. Consolidated
Balance Sheets (Unaudited) (Amounts in thousands, except common
share data)
October 31, 2020
February 1, 2020
Assets
Current assets:
Cash
$
9,197
$
21,527
Accounts receivable
3,728
6,568
Inventories, net
67,584
72,599
Prepaid expenses and other current
assets
41,570
22,256
Total current assets
122,079
122,950
Property and equipment, net
83,337
107,645
Intangible assets, net
99,240
112,814
Goodwill
59,697
77,597
Operating lease assets, net
170,843
211,332
Other assets
2,134
1,650
Total assets
$
537,330
$
633,988
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
62,518
$
43,053
Accrued expenses and other current
liabilities
57,724
42,712
Current portion of long-term debt
2,799
2,799
Current portion of operating lease
liabilities
36,564
33,875
Total current liabilities
159,605
122,439
Long-term debt, net of discount and
current portion
228,547
231,200
Deferred income taxes
16,824
31,034
Operating lease liabilities, net of
current portion
186,258
208,800
Warrants and derivative liability
14,841
-
Other liabilities
1,735
1,950
Total liabilities
607,810
595,423
Commitments and contingencies
Shareholders’ Equity
Common stock, par value $0.01 per share;
50,000,000 shares authorized; 9,619,976 and 8,857,625 shares issued
and outstanding at October 31, 2020 and February 1, 2020,
respectively
96
89
Additional paid-in capital
128,840
125,430
Accumulated (deficit) earnings
(199,416
)
(86,954
)
Total shareholders’ equity
(70,480
)
38,565
Total liabilities and shareholders’
equity
$
537,330
$
633,988
J.Jill, Inc. Reconciliation of
GAAP Net Income to Adjusted EBITDA (Unaudited) (Amounts in
thousands)
For the Thirteen Weeks
Ended
October 31, 2020
November 2, 2019
Net (loss) income
$
(23,159
)
$
2,387
Other expense
1,628
-
Interest expense, net
4,753
4,826
Income tax (benefit) provision
(7,313
)
1,763
Depreciation and amortization
8,359
9,458
Equity-based compensation expense (a)
323
1,128
Write-off of property and equipment
(b)
121
71
Adjustment for costs to exit retail stores
(c)
(556
)
—
Impairment of long-lived assets (d)
906
—
Transaction costs (e)
12,912
—
Other non-recurring items (f)
410
—
Adjusted EBITDA
$
(1,617
)
$
19,633
For the Thirty-Nine Weeks
Ended
October 31, 2020
November 2, 2019
Net loss
$
(112,462
)
$
(89,982
)
Other expense
1,628
-
Interest expense, net
13,640
14,852
Income tax (benefit) provision
(38,464
)
132
Depreciation and amortization
25,672
28,307
Equity-based compensation expense (a)
1,614
3,544
Write-off of property and equipment
(b)
376
85
Adjustment for costs to exit retail stores
(c)
(958
)
—
Impairment of goodwill and other
intangible assets
24,520
95,428
Impairment of long-lived assets (d)
27,493
2,064
Transaction costs (e)
20,636
—
Other non-recurring items (f)
2,393
(740
)
Adjusted EBITDA
$
(33,912
)
$
53,690
(a)
Represents expenses associated with equity
incentive instruments granted to our management. Incentive
instruments are accounted for as equity-classified awards with the
related compensation expense recognized based on fair value at the
date of the grants.
(b)
Represents net gain or loss on the
disposal of fixed assets.
(c)
Represents non-cash gains associated with
exiting store leases earlier than anticipated
(d)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements.
(e)
Represents items management believes are
not indicative of ongoing operating performance. For the thirteen
and thirty-nine weeks ended October 31, 2020, these expenses are
primarily composed of legal and advisory costs.
(f)
Represents items management believes are
not indicative of ongoing operating performance. For thirteen and
thirty-nine weeks ended October 31, 2020, these expenses are
primarily composed of incremental one-time costs related to the
COVID-19 pandemic. For the thirty-nine weeks ended November 2, 2019
these expenses are primarily composed of a gain from insurance
proceeds and restructuring costs.
J.Jill, Inc. Reconciliation of
GAAP Operating Income to Adjusted Income from Operations
(Unaudited) (Amounts in thousands)
For the Thirteen Weeks
Ended
October 31, 2020
November 2, 2019
Operating (loss) income
$
(24,091
)
$
8,976
Adjustment for costs to exit retail stores
(a)
(556
)
—
Impairment of long-lived assets (b)
906
—
Transaction costs (c)
12,912
—
Other non-recurring items (d)
410
—
Adjusted (Loss) Income from Operations
$
(10,419
)
$
8,976
For the Thirty-Nine Weeks
Ended
October 31, 2020
November 2, 2019
Operating loss
$
(135,658
)
$
(74,998
)
Adjustment for costs to exit retail stores
(a)
(958
)
—
Impairment of goodwill and other
intangible assets
24,520
95,428
Impairment of long-lived assets (b)
27,493
2,064
Transaction costs (c)
20,636
—
Other non-recurring items (d)
2,393
(740
)
Adjusted (Loss) Income from Operations
$
(61,574
)
$
21,754
(a)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(b)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements.
(c)
Represents items management believes are
not indicative of ongoing operating performance and are primarily
composed of legal and advisory costs.
(d)
Represents items management believes are
not indicative of ongoing operating performance. For the thirteen
and thirty-nine weeks ended October 31, 2020, these expenses are
primarily composed of incremental one-time costs related to the
COVID-19 pandemic. For thirty-nine weeks ended November 2, 2019,
these expenses are primarily composed of a gain from insurance
proceeds and restructuring costs.
J.Jill, Inc. Reconciliation of
GAAP Net Income to Adjusted Net Income (Unaudited) (Amounts in
thousands, except share and per share data)
For the Thirteen Weeks
Ended
October 31, 2020
November 2, 2019
Net (loss) and total comprehensive (loss)
income
$
(23,159
)
$
2,387
Add: Income tax (benefit) provision
(7,313
)
1,763
(Loss) income before (benefit) provision
for income taxes
(30,472
)
4,150
Add: Adjustment for costs to exit retail
stores (a)
(556
)
—
Add: Impairment of long-lived assets
(b)
906
—
Add: Transaction costs (c)
12,912
—
Add: Other non-recurring items (d)
410
—
Adjusted (loss) income before (benefit)
provision for income taxes
(16,800
)
4,150
Less: Adjusted tax (benefit) provision
(e)
(4,788
)
1,121
Adjusted net (loss) income
$
(12,012
)
$
3,030
Adjusted net (loss) income per common
share attributable to common shareholders:
Basic
$
(1.31
)
$
0.35
Diluted
$
(1.31
)
$
0.34
Weighted average number of common shares
outstanding:
Basic
9,177,350
8,767,733
Diluted
9,177,350
8,790,140
For the Thirty-Nine Weeks
Ended
October 31, 2020
November 2, 2019
Net loss and total comprehensive loss
$
(112,462
)
$
(89,982
)
Add: Income tax (benefit) provision
(38,464
)
132
Loss before benefit for income taxes
(150,926
)
(89,850
)
Add: Adjustment for costs to exit retail
stores (a)
(958
)
—
Add: Impairment of goodwill and
indefinite-lived intangible assets
24,520
95,428
Add: Impairment of long-lived assets
(b)
27,493
2,064
Add: Transaction costs (c)
20,636
—
Add: Other non-recurring items (d)
2,393
(740
)
Adjusted (loss) income before (benefit)
provision for income taxes
(76,842
)
6,902
Less: Adjusted tax (benefit) provision
(e)
(21,900
)
1,864
Adjusted net (loss) income
$
(54,942
)
$
5,038
Adjusted net (loss) income per common
share attributable to common shareholders:
Basic
$
(6.10
)
$
0.58
Diluted
$
(6.10
)
$
0.58
Weighted average number of common shares
outstanding:
Basic
9,004,321
8,730,636
Diluted
9,004,321
8,730,636
(a)
Represents non-cash gains associated with
exiting store leases earlier than anticipated.
(b)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements. For
the thirteen weeks ended August 1, 2020, the Company recognized a
benefit (or reversal of prior period impairment) related to stores
that were permanently closed during the period.
(c)
Represents items management believes are
not indicative of ongoing operating performance. For the thirteen
and thirty-nine weeks ended October 31, 2020, these expenses are
primarily composed of legal and advisory costs.
(d)
Represents items management believes are
not indicative of ongoing operating performance. For the thirteen
and thirty-nine weeks ended October 31, 2020, these expenses are
primarily composed of incremental one-time costs related to the
COVID-19 pandemic. For the thirty-nine weeks ended November 2, 2019
these expenses are primarily composed of a gain from insurance
proceeds and restructuring costs.
(e)
The adjusted tax (benefit) provision for
adjusted net (loss) income is estimated by applying a rate of 28.5%
for fiscal 2020 and 27% for fiscal 2019, to the adjusted (loss)
income before (benefit) provision for income taxes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201210005135/en/
Investors: Caitlin Churchill/Joseph Teklits ICR, Inc.
investors@jjill.com 203-682-8200 Media: Chris Gayton J.Jill,
Inc. media@jjill.com 617-689-7916
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